Hanoi (VNA) – Experts from British bank Hong Kong and Shanghai Banking Corporation Ltd. (HSBC) estimated that Vietnam has the highest growth rate in Asia in 2020 and will be among the most developed countries in the region again this year.
HSBC’s Global Economic Research Division has just released the report titled “Quarterly Economic Forecasts for Asia – Recovery,” which promises a strong and widespread recovery in Asia in 2021.
According to HSBC experts, despite unprecedented challenges, Vietnam has emerged from the epidemic crisis in spectacular fashion. With a population of over 95 million, the Vietnam managed to bring COVID-19 under control much earlier and keep the total number of infection cases around 1,400 through rapid and effective containment efforts.
The second wave at the end of July 2020 was short-lived and did not stop the economic recovery from the country. The crisis has highlighted Vietnam’s strengths as an economy and as a flexible production center, while continuing to enable it to maintain its position as a shining star within the region.
Vietnam’s GDP growth increased by 2.91% in 2020. Although this is the lowest growth in the last decade, it is considered a great success given the complex unfolding of COVID-19 . Vietnam is among the countries with the highest growth rate in the world. Recent data also shows that the recovery is underway, especially with the rise in export orders for smartphones.
Still according to the experts ofHSBC, domestic consumption continues to recover vigorously.
In addition, annual inflation has remained subdued, dropping from 3.9% in the first three quarters of 2020 to 1.5% in November. This is due to the normalization of food prices and the drop in oil prices.
“For 2021, we believe Vietnam will benefit from a recovery thanks to the rise of technology, inflows of FDI and trade agreements. However, we are lowering our growth forecast for 2021 slightly to 7.6% (previously 8.1%) as the recovery in the tourism industry will continue further, ”the experts stressed.
According to them, although Vietnam is poised to lead other countries in the region this year, there are still risks to the process of economic recovery. The tourism sector will still face many obstacles until vaccines are effective and global cooperation in tourism is established. -VNA
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